Multiple choice

Which statement is correct?

  1. A partnership firm is a juristic person.

  2. A partnership firm is a distinct legal entity from its partners.

  3. A partnership firm is not a distinct legal entity from its partners.

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A partnership firm is not a separate legal entity from its partners - it's merely an aggregate of partners who work together. Unlike a company, which has a separate legal identity, a partnership firm cannot hold property or sue/be sued in its own name. The partners are personally liable for the firm's obligations.

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